In this article, we discuss the 5 best dividend stocks to buy according to Noam Gottesman’s GLG Partners. If you want to read our detailed analysis of the hedge fund and its past performance, go directly to read 10 Best Dividend Stocks to Buy According to Noam Gottesman’s GLG Partners.
5. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 60
Dividend Yield as of May 20: 2.85%
GLG Partners’ Stake Value: $117,650,000
PepsiCo, Inc. (NASDAQ:PEP) is one of the world’s leading food and beverage companies, having operations in over 200 countries. Following its strong Q1 2022 results and impressive business model, Street analysts have presented a positive outlook on the company. In May, both JPMorgan and Credit Suisse raised their price targets on the stock to $186 and $168, respectively.
GLG Partner started building its position in PepsiCo, Inc. (NASDAQ:PEP) during the fourth quarter of 2017, after pulling off its investments from the company in 2011. In Q1 2022, the hedge fund increased its position in PepsiCo, Inc. (NASDAQ:PEP) by 36%, equaling shares worth over $117.6 million. The company represented 0.4% of Noam Gottesman’s portfolio.
PepsiCo, Inc. (NASDAQ:PEP) has been paying dividends to its shareholders since 1965 and has maintained a 50-year streak of consistent dividend growth. In May, the company raised its annual dividend by 7% to $1.15 per share, with a dividend yield of 2.85%, as of the close of May 20.
The number of hedge funds tracked by Insider Monkey holding stakes in PepsiCo, Inc. (NASDAQ:PEP) stood at 61 in Q4 2021, down from 60 in the previous quarter. The total value of these stakes is over $4.6 billion, compared with $4.4 billion worth of stakes held by hedge funds in Q3 2021.
ClearBridge Investments mentioned PepsiCo, Inc. (NASDAQ:PEP) in its Q4 2021 investor letter. Here is what the firm has to say:
“The pandemic created opportunities for us to be more aggressive in a variety of areas of the market. We were opportunistic throughout the year. After a strong year for equities, we sought to bolster more defensive areas of the portfolio and added to PepsiCo, increasing our exposure to a high-quality and stable name.”
4. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 80
Dividend Yield as of May 20: 2.99%
GLG Partners’ Stake Value: $91,703,000
Merck & Co., Inc. (NYSE:MRK) is an American multinational pharmaceutical company, based in New Jersey.
Merck & Co., Inc. (NYSE:MRK) has been increasing its dividend for the past 11 years consecutively, with a CAGR of 6.2%. In 2021, the company announced a 6% hike in its annual dividend to $0.69 per share, with a dividend yield of 2.99%, as recorded on May 20. In April, Barclays lifted its price target on Merck & Co., Inc. (NYSE:MRK) to $97, while maintaining an Overweight rating on the shares. In the same month, Morgan Stanley initiated its coverage of the stock with an Equal Weight rating and believes that the company is best positioned to deliver growth in the coming years.
As per Insider Monkey’s Q4 2021 data, 80 hedge funds held positions in Merck & Co., Inc. (NYSE:MRK), with stakes valued at $3.78 billion. In comparison, 77 hedge funds held stakes in the company in the previous quarter, with a collective value of $4.5 billion.
ClearBridge Investments mentioned Merck & Co., Inc. (NYSE:MRK) in its Q4 2021 investor letter. Here is what the firm has to say:
“Other pharma companies are providing solutions as well. Merck’s antiviral pill molnupiravir is less effective than Pfizer’s, but it will be a helpful alternative for patients who cannot take Pfizer’s due to drug-drug interactions. Merck is also helping to manufacture Johnson & Johnson’s COVID-19 vaccine, which has less stringent storage requirements than the mRNA vaccines do.”
3. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 72
Dividend Yield as of May 20: 3.48%
GLG Partners’ Stake Value: $158,289,000
Intel Corporation (NASDAQ:INTC) is an American multinational tech company that also specializes in the manufacturing of semiconductor chips. In January, the company announced a 5% hike in its annual dividend to $0.365 per share. The company maintains a 7-year streak of consistent dividend growth, falling into the category of Dividend Challengers. Moreover, Intel Corporation (NASDAQ:INTC) has been paying its dividend continuously since 1992.
In Q4 2021, Intel Corporation (NASDAQ:INTC) remained famous amongst the elite funds, as 72 hedge funds tracked by Insider Monkey held a $5.5 billion worth of stake in the company. In the previous quarter, 66 hedge funds held positions in the company, with stakes valued at $6.47 billion. In Q1 2022, Seth Klarman’s Baupost Group held the largest stake in Intel Corporation (NASDAQ:INTC), worth $822.3 million.
In April, Northland mentioned in its investor note that Intel Corporation (NASDAQ:INTC) is well-positioned to exceed Q2 estimates and lifted its price target on the stock to $62, with an Outperform rating on the shares. In Q1 2022, GLG Partners held over 3 million shares in Intel Corporation (NASDAQ:INTC), valued at $158.2 million. The company accounted for 0.55% of Noam Gottesman’s portfolio.
2. Citigroup Inc. (NYSE:C)
Number of Hedge Fund Holders: 97
Dividend Yield as of May 20: 4.10%
GLG Partners’ Stake Value: $140,950,000
Citigroup Inc. (NYSE:C) is an American multinational investment bank and financial services company based in New York. GLG Partners started building its position in the company during the second quarter of 2011, with shares worth $4.5 million. In Q1 2022, the hedge fund held over 2.6 million shares in the company, worth roughly $141 million. Citigroup Inc. (NYSE:C) made up 0.49% of the hedge fund’s 13F portfolio.
In May, Oppenheimer called Citigroup Inc. (NYSE:C) a profitable bank with its consistent dividends and believed that the company will benefit from loan growth and high-interest rates. The firm set a $93 price target on the stock, with an Outperform rating on the shares. Citigroup Inc. (NYSE:C) currently pays a quarterly dividend of $0.51 per share, with a dividend yield of 4.10%, as recorded on May 20.
Insider Monkey’s Q4 2021 data shows that hedge fund interest has spiked in Citigroup Inc. (NYSE:C), as 97 hedge funds held stakes in the company in Q4, up from 79 in the previous quarter. These stakes hold a total value of over $6.6 billion. With shares worth roughly $3 billion, Warren Buffett’s Berkshire Hathaway was the largest shareholder of this New York-based company in Q1 2022.
Artisan Value Fund mentioned Citigroup Inc. (NYSE:C) in its Q4 2021 investor letter. Here is what the firm has to say:
“We fully exited the position in Citigroup. Global financial services company Citigroup made a $900 million clerical error and received a public reprimand from federal regulators. This, after a decade focused on process control, information technology and risk systems, makes the error substantially more costly than just the $900 million mistake. Regulators believe the company’s risk management improvements have fallen short of expectations. To rectify the situation, a process and technology spending surge could negatively affect 2021-2022 profits by 10% to 20%. Trust and confidence are important in large financial institutions, and this incident combined with the CEO’s sudden retirement shook ours.”
1. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 70
Dividend Yield as of May 20: 5.49%
GLG Partners’ Stake Value: $121,580,000
AT&T Inc. (NYSE:T) is an American multinational telecommunications holding company and is the largest provider of mobile services in the US. In March 2022, the company announced a quarterly dividend of $0.28 per share, after the company acquired a position in Warner Bros. Discovery. The annual dividend will come at $1.11 per share, in line with what the company had already declared. AT&T Inc. (NYSE:T) has been raising its dividend consistently for the past 35 years. The stock’s dividend yield stood at 5.49%, as of May 20.
The number of hedge funds tracked by Insider Monkey having stakes in AT&T Inc. (NYSE:T) increased to 70 in Q4 2021, up from 66 in the previous quarter. These stakes hold a consolidated value of roughly $5 billion, compared with $3.2 billion worth of stakes held by hedge funds in Q3 2021.
In April, Goldman Sachs initiated its coverage of AT&T Inc. (NYSE:T) with a $23 price target and a Buy rating. The firm appreciated a 5.5% dividend yield and its communication-focused business model. In Q1 2022, AT&T Inc. (NYSE:T) represented 0.42% of Noam Gottesman’s portfolio.
Weitz Investment Management mentioned AT&T Inc. (NYSE:T) in its Q4 2021 investor letter. Here is what the firm has to say:
“After several quarters of pandemic-induced outsized growth, new broadband connection growth has slowed for U.S. cable operators. This slower growth has coincided with a renewed push by competitors like Verizon and AT&T to offer high-speed data (either via wireless connects or by building new fiber-optic networks).”
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